STEM - Stem prices $200M upsized debt offering

2023-03-30 07:13:07 ET

Stem ( NYSE: STEM ) announced on Thursday the pricing of $200M of its Green Convertible Senior Notes due 2030.

The offering was upsized from the previously announced $175M to $200M. The notes will accrue 4.25% interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted.

Initial purchasers have been granted an option to purchase, for settlement within a 13-day period from, and including, the date when the notes are first issued, up to an additional $40M of the notes. The sale to the initial purchasers is expected to settle on April 3, 2023.

The notes will be convertible at an initial conversion rate of 140.3066 shares of Stem's common stock per $1,000 principal amount of notes.

They can also be redeemed, in whole or in part, for cash at Stem's option at any time, and from time to time, on or after April 5, 2027 and before the 45th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Stem's common stock exceeds 130% of the conversion price for a specified period of time.

The company plans to use ~$99.8M of the net proceeds to purchase and surrender for cancellation approximately $163M of its 0.50% Green Convertible Senior Notes due 2028 in privately negotiated transactions concurrently with the pricing of the offering.

Around $23.2M of the proceeds will be used to fund the cost of entering into these capped call transactions and the remaining amount for general corporate purposes.

Shares of the energy solutions firm fell over 2% in Thursday's premarket hours

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